APPLE has lost a landmark £1.5billion lawsuit in the UK over claims it charged ‘excessive’ prices on its App Store – and millions of iPhone users could now get £75 each.
The ruling was handed down in London yesterday, after the Competition Appeal Tribunal found the tech giant had abused its dominant position by overcharging developers and shutting out rivals.
The class action was brought on behalf of around 20 million British iPhone and iPad users, opening the door for a potential £1.5billion compensation payout.
Apple, however, says it will appeal – meaning payments are not yet guaranteed.
Rachael Kent, a lecturer at King’s College London who led the case, accused the company of making “exorbitant profits” by blocking competition in app distribution and in-app purchases.
For years, developers like Spotify and Epic Games have criticized Apple for charging commissions of up to 30 percent on app sales.
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The firm insists the fee helps cover marketing, distribution and security, with smaller developers charged less.
Yesterday’s ruling is the first major mass lawsuit against a tech giant to reach trial under the UK’s collective action regime – and could spark similar cases against other firms.
Ms Kent said: “This case proves that the UK’s collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account.
“Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.”
An Apple spokesperson said: “We thank the tribunal for its consideration but strongly disagree with this ruling, which takes a flawed view of the thriving and competitive app economy.
“The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections – giving developers and consumers many options in how they build, share, and download apps.
“We intend to appeal.”
The verdict adds to Apple’s ongoing battle with UK officials over privacy rules.
The government has demanded the company weaken its iCloud encryption, but Apple has refused, opting to pull its advanced data-protection features from the UK instead.
Despite the controversy, Apple says it has doubled its investment in Britain over the past five years to £18billion and now supports more than 550,000 UK jobs through its workforce and suppliers.
Apple has faced a series of major legal and regulatory challenges over the years.
In Epic Games v. Apple (US, 2020), the maker of Fortnite accused Apple of running an illegal monopoly through its App Store, sparking a global legal battle over developer fees.
In 2024, the European Union fined Apple nearly €1.8 billion for blocking music-streaming rivals like Spotify from promoting cheaper options outside its App Store.
The Battery “Throttle” Scandal (2017) saw Apple admit to slowing down older iPhones, leading to multiple lawsuits and hundreds of millions of dollars in settlements in the US.
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In 2023, Apple faced an Apple Pay antitrust class action over claims it overcharged banks for using its digital wallet service.
Additionally, in 2022, Dutch regulators fined the company millions for failing to allow dating apps to use alternative payment methods.
